NRB starts issuing new banknotes to BFIs

Nepal Rastra Bank (NRB) has started circulating new banknotes for the upcoming festive season to the public from Sunday. Though the central bank itself will distribute crisp banknotes to the public from October 2, it started distributing such notes to the bank and financial institutions (BFIs) from Sunday. The central bank estimates that it will issue around Rs 8 billion in different denominations ahead of the Dashain-Tihar-Chhath festive season. The central bank will provide exchange facility of two bundles of bank notes of Rs 5, Rs 10, Rs 20 and Rs 50 denominations, and a bundle of Rs 100 denomination per individual from its own office from next Sunday. Each bundle contains 100 bills. An individual can exchange up to Rs 32,000. Last year, the central bank had fixed such limit at Rs 22,000 per person. People in Kathmandu can exchange new banknotes from the central bank's Currency Management Department, Thapathali, while people outside valley can avail such service from the central bank's eight offices across the country. The NRB is distributing Rs 1.5 billion worth of banknotes from commercial banks, Rs 200 million from development banks and Rs 70 million from finance companies in Kathmandu Valley. Bhuban Kadel, executive director at the Currency Management Department of the NRB, told Republica that the central bank started distributing new notes to the BFIs from Sunday itself.  "We have provided new banknotes of up to Rs 90 million to big banks like Rastriya Banijya Bank Ltd and Nepal Bank Ltd. They come with the check and withdraw money from their account in the central bank. While giving them cash, we offer them fresh and crisp banknotes," he explained. Last year, the central bank had circulated a total of Rs 57.86 billion, including the denomination of Rs 1,000, in the festival season last year. The NRB has been distributing new banknotes ahead of Dashain and Tihar festivals to meet the rising demand for crisp notes during major festivals. The customary practice of offering new notes while receiving Tika during Dashain and Tihar festivals increases demand for new notes. Source: republica